Hope Gold Price Per Troy Ounce Continues to fall

Finally, gold price per troy ounce falls below $1,500.

The closing gold price per troy ounce on Friday was $1,483.

For the past two months, gold has stayed above $1,500 most of the times.

It is a very, very high price.

What causes the fall?

For one thing, the Greece situation has stabilized.

Since gold is a commodity deemed as safe haven, the minute investors start to relax, the demand falls.

The fall in oil price is also a factor.

When the price of oil spirals upward, the trend is that gold price per Troy ounce spirals in the same direction.  Both oil and gold belong to the commodity market.

Since oil price falls, gold and silver prices fall as well.

The third factor is the rise in USD.

Investors buy gold as a hedge against the declining value of USD.  Once the USD gains momentum, there is no need to continue buying gold.

How low will gold price per Troy ounce go?

Nobody knows.

A crisis anywhere around the world would cause gold to shine again.

With the current uncertainty round the world, it is a matter of time before the next crisis erupt.

The best is to buy gold, especially gold bars and gold coins, when the price falls below the average for the year.

The average gold price per Troy ounce for the current year is $1,445.

If gold falls below this level, it is a good buy.

The best is to fall below $1,400.

It will take a lot of confidence in the investors to cause a major gold crash.

If gold falls below $1,200, that means something good is happening in the economy.

When the investors see the economy picks up, especially the economy in US, they will sell gold and silver to buy stocks and real estate.

This can happen when the US reports unexpectedly low unemployment, and millions of jobs created in the economy.

So far, the reports are not that optimistic.

For the immediate term, gold and silver price per troy ounce may fall further.

However, in the longer term, gold and silver will rise higher.

The inflation rate is still high. Many people are still unemployed.

While China faces the risk of hyperinflation, the US faces the risk of uncontrollable debt.

The macro economic factors will push the price of gold and silver to new high.